I understand that there is a lot to learn and understand about a Reverse Mortgage. As a former HUD counselor I have a unique  viewpoint , I had a chance to see Virtually every Reverse Mortgage that there is. I will make this commitment to you. I will help you qualify, apply and be approved for your Reverse Mortgage with the terms that are best for you.

 

Top Ten Things To Know About A Reverse Mortgage

1. What is a reverse mortgage?
A reverse mortgage is a special type of home loan that
lets a homeowner convert a portion of the equity in
his or her home into cash. The equity built up over
years of home mortgage payments can be paid to you.
But unlike a traditional home equity loan or second
mortgage, no repayment is required until the
borrower(s) no longer use the home as their principal
residence. HUD's reverse mortgage provides these
benefits, and it is federally-insured as well.
2. Can I qualify for a HUD reverse mortgage?
To be eligible for a HUD reverse mortgage, HUD's
Federal Housing Administration (FHA) requires that the
borrower is a homeowner, 62 years of age or older; own
your home outright, or have a low mortgage balance
that can be paid off at the closing with proceeds from
the reverse loan; and must live in the home. You are
further required to receive consumer information from
HUD-approved counseling sources prior to obtaining the
loan. You can contact the Housing Counseling
Clearinghouse on 1-800-569-4287 to obtain the name and
telephone number of a HUD-approved counseling agency
and a list of FHA approved lenders within your area.
3. Can I apply if I didn't buy my present house with
FHA mortgage insurance?
Yes. It doesn't matter if you didn't buy it with an
FHA-insured mortgage. Your new HUD reverse mortgage
will be a new FHA-insured mortgage loan.
4. What types of homes are eligible?
Your home must be a single family dwelling or a
two-to-four unit property that you own and occupy.
Townhouses, detached homes, units in condominiums and
some manufactured homes are eligible. Condominiums
must be FHA-approved. It is possible for individual
condominiums units to qualify under the Spot Loan
program.
5. What's the difference between a reverse mortgage
and a bank home equity loan?
With a traditional second mortgage, or a home equity
line of credit, you must have sufficient income versus
debt ratio to qualify for the loan, and you are
required to make monthly mortgage payments. The
reverse mortgage is different in that it pays you, and
is available regardless of your current income. The
amount you can borrow depends on your age, the current
interest rate, and the appraised value of your home or
FHA's mortgage limits for your area, whichever is
less. Generally, the more valuable your home is, the
older you are, the lower the interest, the more you
can borrow. You don't make payments, because the loan
is not due as long as the house is your principal
residence. Like all homeowners, you still are required
to pay your real estate taxes and other conventional
payments like utilities, but with an FHA-insured HUD
Reverse Mortgage, you cannot be foreclosed or forced
to vacate your house because you "missed your mortgage
payment."
6. Can the lender take my home away if I outlive the
loan?
No! You do not need to repay the loan as long as you
or one of the borrowers continues to live in the house
and keeps the taxes and insurance current. You can
never owe more than your home's value.
7. Will I still have an estate that I can leave to my
heirs?
When you sell your home or no longer use it for your
primary residence, you or your estate will repay the
cash you received from the reverse mortgage, plus
interest and other fees, to the lender. The remaining
equity in your home, if any, belongs to you or to your
heirs. None of your other assets will be affected by
HUD's reverse mortgage loan. This debt will never be
passed along to the estate or heirs.
8. How much money can I get from my home?
The amount you can borrow depends on your age, the
current interest rate, and the appraised value of your
home or FHA's mortgage limits for your area, whichever
is less. Generally, the more valuable your home is,
the older you are, the lower the interest, the more
you can borrow.
9. Should I use an estate planning service to find a
reverse mortgage?
I've been contacted by a firm that will give me the
name of a lender for a "small percentage" of the loan?
HUD does NOT recommend using an estate planning
service, or any service that charges a fee just for
referring a borrower to a lender! HUD provides this
information without cost, and HUD-approved housing
counseling agencies are available for free, or at
minimal cost, to provide information, counseling, and
free referral to a list of HUD-approved lenders. Call
1-800-569-4287, toll-free, for the name and location
of a HUD-approved housing counseling agency near you.
10. How do I receive my payments?
You have five options:
•       Tenure - equal monthly payments as long as at least
one borrower lives and continues to occupy the
property as a principal residence.
•       Term - equal monthly payments for a fixed period of
months selected.
•       Line of Credit - unscheduled payments or in
installments, at times and in amounts of borrower's
choosing until the line of credit is exhausted.
•       Modified Tenure - combination of line of credit with
monthly payments for as long as the borrower remains
in the home.
•       Modified Term - combination of line of credit with
monthly payments for a fixed period of months selected
by the borrower.

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